Starbucks (SBUX) Q4 2025 earnings

Starbucks It reported Wednesday that its quarterly same-store sales returned to growth for the first time in nearly two years, showing its turnaround strategy is capturing lapsed customers.

The coffee chain’s global store sales rose 1%, boosted by international markets. US same-store sales were flat during the quarter but turned positive in September. Wall Street had expected a 0.3% decline in global same-store sales and a 0.9% decline in US same-store sales.

“We’re a year into our return strategy to Starbucks, and it’s clear that our transformation is taking hold,” CEO Brian Nicol said in a statement.

Starbucks shares rose 2% in extended trading.

Here’s what the company reported for the quarter ending September 28 compared to what Wall Street was expecting, based on a survey of analysts conducted by LSEG:

• EPS: 52 cents were revised versus 56 cents expected
• profit: $9.57 billion versus $9.35 billion expected

The coffee giant reported fiscal fourth-quarter net income attributable to Starbucks of $133.1 million, or 12 cents per share, down from $909.3 million, or 80 cents per share, a year earlier.

Excluding restructuring costs, lawsuit settlements and other items, Starbucks had profit of 52 cents per share. During the quarter, the company closed 627 locations and laid off approximately 900 non-retail employees as part of a restructuring plan.

In addition to the restructuring plan, Starbucks has been investing heavily in labor, including adding assistant store managers to several North American cafes. Added labor costs impacted operating margin in the quarter.

Net sales It rose 5% to $9.57 billion.

To revive sales in the US, Nicole focused on improving the store experience for customers and reducing service times to less than four minutes per order. The company’s marketing efforts have shifted from promotions and limited-time items to highlighting coffee and trendy innovations, such as protein-packed cold foam.

Outside of Starbucks’ home market, same-store sales increased 3%, driven by a 6% jump in traffic.

In China, the company’s second-largest market, same-store sales rose 2%, helped by a 9% rise in traffic. Under pressure in the country from local competitors offering cheaper drinks, Starbucks has cut the prices of many of its iced drinks to bring back customers.

The company is also exploring selling a stake in its China business after years of declining sales in the competitive market. Nicholl told CNBC’s Jim Cramer that the company values ​​its business in China at more than $10 billion.